Last week, the Hong Kong government pledged to support land supply and set aside $580 million in annual funds over the next five years to search for new construction areas, hoping to overcome the current land shortage.
Nicole Wong, in charge of Hong Kong real estate research at CLSA, assessed that the government’s above efforts only had a limited impact on price control.
Wong said: “It can be seen that the government is currently putting a lot of effort into selling land, but this is very time-consuming.
Hong Kong is trying to cool down the real estate market.
Previously, Hong Kong introduced a series of measures to cool the market such as increasing registration tax and cutting real estate debt.
According to Wong, restrictions would be more effective than adding land supply, which would take three to four years before these plots come to market.
Raymond Yeung, China economist at ANZ, also agreed, saying the restrictions will reduce market manipulation.
However, Andrew Freris, Asia investment consultant at BNP Paribas Wealth Management, said that it is difficult for the Hong Kong government to do much to control real estate prices, which rely on international factors.
He said: `It is very unfortunate that Hong Kong’s real estate policies are influenced by Ben Bernanke (director of the US Federal Bank).
Hong Kong, one of Asia’s financial centers, was forced to inject money into the housing market, after central banks around the world increased liquidity through loosening monetary policies, to promote
Yeung added that for Hong Kong’s housing prices to fall, the government needs to wait until the US ends the above easing cycle.
Duy Tung (according to CNBC)